European stocks finish higher on German data

Europe's main stock indices rose Tuesday on mixed German data which showed that investors still see the current economic situation in Germany as being the best in years.

Frankfurt's DAX 30 index finished up 0.40 percent from Monday's closing level to stand at 11,939.58 points, while in Paris the CAC 40 gained 0.10 percent to 5,192.64 points.

Elsewhere, London's FTSE 100 index rose 0.15 percent to 7,062.93 points, boosted by some strong company results.

But uncertainty over Greece's ability to meet its debt payments continued to weigh on market sentiment, slashing the Athens index by 3.33 percent at the close.

The euro meanwhile stabilised at $1.0751 compared with $1.0741 late in New York on Monday.

In Frankfurt, a leading survey showed that German investor sentiment fell for the first time in six months in April as weak global growth weighed on confidence.

The widely watched investor confidence index calculated by the ZEW economic institute slipped by 1.5 points to 53.3 points in April, disappointing analysts' expectations for a further increase this month, ZEW said in a statement.

But the sub-index measuring financial market players' view of the current economic situation in Germany jumped by 15.1 points to 70.2 points in April, its highest level since July 2011.

"The April reading of ZEW only disappointed at first glance," said BayernLB economist Stefan Kipar.

"Overall, the data are positive. The German economy remains on a recovery path and the framework conditions -- a weak euro and low oil prices -- continue to be favourable," Kipar said.

"Germany is doing fine," agreed Berenberg Bank economist Holger Schmieding.

"Strong tailwinds from a robust labour market, low oil prices and a competitively priced exchange rate as well as the reform successes in countries such as Spain are propelling the German economy forward," Schmieding said.

Tuesday's gains follow a rebound on Monday after China announced a raft of stimulus measures to bolster growth.

- Athens 'collecting coins' -

Greek Prime Minister Alexis Tsipras's cash-strapped government had launched an appeal in March for public agencies to turn over their reserves on a voluntary basis. But a Monday decree made that compulsory and also affected local authorities.

Greece is struggling to reach a deal with its international creditors on the reforms to be undertaken in exchange for some 7.2 billion euros in remaining bailout funds. The government is therefore urgently trying to scrape together cash to meet loan repayments and avoid a default that could send it tumbling out of the eurozone.

"Athens has been hoovering up any spare cash from local authorities to show ... it means business; however, this is the political equivalent of collecting coins that have fallen down the back of the couch, but it may save them yet," said IG trader David Madden.

He expressed confidence a solution will eventually be reached.

"Despite the looming Eurogroup meeting at the end of the week to discuss Greece's finances, traders are confident the indebted nation will be given yet another chance," he said.

Tsipras will also meet Chancellor Angela Merkel of Germany, Europe's de facto paymaster, on Thursday on the sidelines of an EU summit.

- Surprise bid by Teva -

US stocks were mixed in early trade Tuesday with pharmaceuticals boosted by Israeli giant Teva's surprise announcement of a $40.1 billion cash-and-stock bid for generic drug maker Mylan.

Around mid-day in New York, the Dow Jones Industrial Average was down 0.38 percent to 17,966.07 points.

The broad-based S&P 500 slipped 0.10 percent to 2,098.26, while the tech-rich Nasdaq Composite Index was up 0.39 percent at 5,014.24.

Teva's cash-and-stock bid would quash a bid by Mylan earlier this month to acquire Perrigo for $28.9 billion.

Mylan shares surged 9.38 percent to $74.4250 in mid-day trades while Teva gained 2.01 percent at $64.56. Perrigo sank 2.28 percent to $193.56.

Asian equities mostly rose after overnight gains on Wall Street.

Hong Kong surged 2.79 percent, Tokyo stocks jumped 1.40 percent and Shanghai rallied 1.82 percent.

The gains reversed some of the losses suffered on Monday, partly on fears about Greece's future in the eurozone.

burs-boc/hmn